Governance of Islamic Finance Institutions in Nigeria: Shariah Compliance, Board Structures, and Financial Performance

This dissertation examines the governance of Islamic finance institutions in Nigeria, investigating the relationship between Shariah compliance governance, board structures, and financial performance. The Nigerian Islamic finance sector, including non-interest banks, Sukuk issuances, and takaful institutions, has grown substantially since the Central Bank of Nigeria's non-interest banking framework was established, creating a governance environment that uniquely blends conventional corporate governance principles with Shariah governance requirements. Existing corporate governance frameworks in Nigeria are not specifically designed for dual-governance (Shariah and conventional) institutional structures, creating governance gaps that this study investigates. Drawing on Islamic finance governance theory, institutional theory, and conventional board governance literature, this study develops a Dual Governance Assessment Framework and applies it to eight licensed non-interest financial institutions over eight years. The framework evaluates Shariah Supervisory Board composition and independence, integration between conventional and Shariah governance mechanisms, and the governance-performance relationship using both conventional financial metrics and Islamic finance-specific performance indicators. A mixed-method research design combines quantitative panel regression with qualitative case study analysis. The study makes original theoretical contributions by developing the Dual Governance Assessment Framework and provides the first comprehensive empirical governance analysis of Nigerian non-interest financial institutions. Findings will assist the Central Bank of Nigeria, Shariah governance bodies, and Islamic finance institutions in designing more effective governance frameworks. Keywords: Islamic finance governance, Shariah compliance, non-interest banking, dual governance, Nigeria.